SWOT (Strengths and Weaknesses, and Opportunities and Threats) is a basic analytical tool in management that has become popular in recent years. SWOT analysis is often used by strategic planners and top management in developing competitive strategies. It is typically used to decide corporate strategies and to make product or market level analyses (Reddy 1994). SWOT is a widely used thinking framework for identifying Strengths, Weaknesses, Opportunities and Threats. It enables key factors to be visibly recorded as a high-level summary of a business. SWOT analysis is a summary that is simple but powerful. It also enables a judgment to be made about aspects of the external business environment, which can affect the performance of the business, through looking at the Opportunities and Threats it faces in the wider world (Elkin 1998).
Strengths
1. Quality Products and Services – Sands Macau is committed to product and services.
2. First Mover/Innovator – Sands Macau is seen as an innovator in terms of amenities, facilities, designs, technology and products.
Weaknesses
1. Unable to Maintain Leadership Position – Because of intense competition Sands Macau cannot maintain its leadership position in the casino industry.
Opportunities
1. Development of the Cotai Strip – The Cotai Strip in Macau is being further developed as a business district where hotels, casinos and other establishments can be accommodated. This offers new opportunities for Las Vegas Sands Corporation to expand its businesses in Macau.
2. Increase in Visitors – Macau is experiencing a steady growth of visitor numbers.
Threats
1. Political, Social and Economic Changes – political, social and economic developments in Macau, particularly the changes in policies of the governments or changes in laws and regulations or their interpretations may adversely affect the company’s operations and cash flows.
2. Intense Competition – the hotel, resort and casino businesses are highly competitive. Sands Macau current competes with numerous other casinos located in Macau. In addition, it is expected that the competition will increase in the near future from local and foreign casino operators. Sands Macau will also compete to some extent with casinos located elsewhere in Asia, such as Malaysia’s Genting Highlands, as well as gaming venues in Australia, New Zealand and elsewhere in the world, including Hong Kong, Japan, Singapore, Taiwan and Thailand and other gaming centers worldwide.
3. Typhoon and Other Natural Disasters – Macau us susceptible to severe typhoons that may disrupt operations. Macau consist of peninsula and two islands off the coast of mainland China. On some occasions, typhoons have caused a considerable amount of damage to Macau’s infrastructure and economy. In the event of a major typhoon or other natural disaster in Macau, Sands may be severely disrupted and the results of operation could be adversely affected.
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